Amit Air Tel

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A STUDY OF MARKETING STRATEGY

AND PERFORMANCE OF AIRTELCOMPANY IN NEW DELHI

RESEARCH REPORT

SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT

OF

MASTER OF BUSINESS ADMINISTRATION

(Affiliated TO Mahamaya Technical University, Noida )

Academic Session

[2010-2012]

Internal supervisor: SUBMITTED BY:-

MRS.SHARDA KUMARI AMIT KR. BARGOTI LECTURER -MBA Roll no: 1030970001

MBA 2nd Year

RAJ KUMAR GOEL ENGINEERING COLLEGE 40 K.M. Stone, NH-24, Delhi Hapur Road, Pilkhuwa


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CERTIFICATE

This is to certify the Dissertation entitled A Study of Markrting Strategy

and Performance of Airtel Company . Submitted by Amit Kumar Bargoti

having Roll No. 1030970001 for the partial fulfillment of the requirements of

MBA(Batch-2010-12), RKGEC, embodies the bonafide work done by him/her under

our supervision.

PLACE:PLACE:

DATE:DATE:


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DECLARATIONDECLARATION

I hereby declare that I have carried out Research Report Project on the topic

entitled Marketing strategy and performance of Airtel Company in new

Delhi

I further declare that this project work is based on my original work and no part

of this project has been published or submitted to anybody.

AMIT KUMAR BARGOTI


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CONTENTS

SCOPE OF STUDY

INTRODUCTION

EXECUTIVE SUMMARYEXECUTIVE SUMMARY

LITERATURE REVIEW

OBJECTIVE OF THE STUDY

RESEARCH METHOLOGY

FINDINGS &LIMITATIONS

CONCLUSION

BIBLIOGRAPHY

QUESTIONNAIRE


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Acknowledgement


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ACKNOWLEDGEMENTACKNOWLEDGEMENT

I am sincerely thankful to all those people who have been giving

me any kind of assistance in the making of this project report.

I express my gratitude to Mr. Neeraj Singh, who has through her

vast experience and knowledge has been able to guide me, both ably

and successfully towards the completion of the project. I express mygratitude,RAJ KUMAR GOEL ENGINEERING COLLEGE,PILKHUWA

GHAZIABAD. I would hereby, make most of the opportunity by

expressing my sincerest thanks to all my faculties whose teachings

gave me conceptual understanding and clarity of comprehension, which

ultimately made my job more easy. Credit also goes to all my friends

whose encouragement kept me in good stead. Their cont inuous

support has given me the strength and confidence to complete the

project without any difficulty.

Last of all but not the least I would l ike to acknowledge my

gratitude to the respondents without whom this survey would have been

incomplete.

I am also thankful to authority of Airtel for providing me the information.

AMIT KUMAR BARGOTI


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Prefa

ce


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PREFACEPREFACE

I,Amit kumar Bargoti kumar, being a student of MBA, of RAJ KUMAR

GOEL ENGINEERING COLLEGE,PILKHUWA GHAZIABAD.

The project title Marketing strategy and performance of Airtel company

is the analysis of the big scale sector of communication. This project

involves the big scale level provided by Airtel to its customers. The

survey was conducted so as to analyze the big scale sector prevailing

in the current industry and the improvement that can be made upon it.

Market research study has been conducted in order to bring out the

picture of big scale sector that exists in this industry. The differences in

service quali ty that exists in the market. What the customers

preferences are provided by the Airtel?


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Executi

ve


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Summa

ry


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EXECUTIVE SUMMARYEXECUTIVE SUMMARY

The project is an extensive report on how the Airtel Company

markets its strategies and how the company has been able in tackling

the present tough competi tion and how i t is cooping up by the

allegations of the quality of its products. The report begins with the

history of the products and the introduction of the Airtel Company. This

report also contains the basic marketing strategies that are used by the

Airtel Company of manufacturing process, technology, production

policy, advertising, collaboration, export scenario, future prospect and

government policies. The report includes some of the key salient

features of market trend issues.

In todays world of cutthroat f ierce competition, i t is very

essential to not only exist but also to excel in the market. Todays

market is enormously more complex. Hence forth, to survive in the

market, the company not only needs to maximize its profit but also

needs to satisfy its customers and should try to build upon from there.


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Objecti

ve of


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the

Study


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OBJECTIVE Of the study

1. To study the market shares of Airtel in telecommunication Industry.

2. To study the level of customer satisfaction in Airtel.

3. To study the consumer trend in telecommunication sector.

4. To study competitive marketing strategies adopted by Airtel.


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ResearchMethod

ology


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RESEARCH METHODOLOGY

Achieving accuracy in any research requires in depth study regarding the

subject. As the prime objective of the project is to compare Airtel with the

existing competitors in the market and the impact of WLL on Airtel, the

research methodology adopted is basically based on primary data via which

the most recent and accurate piece of first hand information could be

collected. Secondary data has been used to support primary data wherever

needed.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

The main tool used was, the questionnaire method. Further direct interview

method, where a face-to-face formal interview was taken. Lastly observation

method has been continuous with the questionnaire method, as one

continuously observes the surrounding environment he works in.


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TYPE OF RESEARCHTYPE OF RESEARCH

EXPLORATORY:EXPLORATORY:

Type of research carried out was exploratory in nature; theType of research carried out was exploratory in nature; the

objective of such research is to determine the approximate areaobjective of such research is to determine the approximate area

where the drawback of the company lies and also to identify thewhere the drawback of the company lies and also to identify the

course of action to solve it. for this purpose the information provedcourse of action to solve it. for this purpose the information proved

useful for giving right suggestion to the company.useful for giving right suggestion to the company.


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DATA COLLECTIONDATA COLLECTION METHODMETHOD

TThere two type of method of data collection.here two type of method of data collection.

PPrimary datarimary data

SSecondary dataecondary data

Data used for the research work was primary in nature.Data used for the research work was primary in nature.

PRIMARY DATAPRIMARY DATA::

Primary data is that which is the collected for the fistPrimary data is that which is the collected for the fist

time and thus happen to be originated in character.time and thus happen to be originated in character.

QUESTIONNAIRE SURVEYQUESTIONNAIRE SURVEY::

In the studies a questionnaire is prepared. the questionnaireIn the studies a questionnaire is prepared. the questionnaire

consists of 20 questions.consists of 20 questions.


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SECONDARY DATASECONDARY DATA::

secondary data refer to the data that has beensecondary data refer to the data that has been

already collected .the secondary data, which has been used toalready collected .the secondary data, which has been used to

carry out this study, are as follow:carry out this study, are as follow:

books, journals, magazines, newspapersbooks, journals, magazines, newspapers

industry reportsindustry reports

companys internet sitecompanys internet site

other relevant studies material and websites.other relevant studies material and websites.

SAMPLE UNITSAMPLE UNIT: - NEW DELHI: - NEW DELHI

The research process was done by interacting with number ofThe research process was done by interacting with number of

customers during the activities performed, which included,customers during the activities performed, which included,

markets, cold calling, canopies, etc. sample design consists ofmarkets, cold calling, canopies, etc. sample design consists of

random sampling.random sampling.

SAMPLE SIZESAMPLE SIZE: -: - 30 PEOPLE30 PEOPLE


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METHOD OF COLLECTIONMETHOD OF COLLECTION: -: -

FIELD PROCEDURE FOR GATHERING PRIMARY DATAFIELD PROCEDURE FOR GATHERING PRIMARY DATA

Included observation and interview schedule in which theIncluded observation and interview schedule in which the

questionnaires were filed by the interviewer.questionnaires were filed by the interviewer.

personal interviews through self administered survey was done topersonal interviews through self administered survey was done to

collect the data, market research was undertaken, that wascollect the data, market research was undertaken, that was

accomplished by performing various activities designed.accomplished by performing various activities designed.

RESEARCH INSTRUMENTRESEARCH INSTRUMENT::

QUESTIONNAIREQUESTIONNAIRE

THE QUESTIONNAIRE WAS FORMULATED BY KEEPTHE QUESTIONNAIRE WAS FORMULATED BY KEEP

IN MIND THE FOLLOWING POINTSIN MIND THE FOLLOWING POINTS: -: -

GGiving the respondents clear comprehension of theiving the respondents clear comprehension of the

question.question.

IInducing the respondents to co-operate.nducing the respondents to co-operate.

GGiving instructions as to what is wanted.iving instructions as to what is wanted.

IIdentifying the needs to be known.dentifying the needs to be known.

LIMITATIONS:LIMITATIONS:


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The following were the limitations that were there during the course of the

study:

1. Limited time period.

2. Less number of respondents.

Biasness of the respondents.

Primary data was collected using the following techniques

Questionnaire Method

Direct Interview Method and

Observation Method

The main tool used was, the questionnaire method. Further direct

interview method, where a face-to-face formal interview was taken.

Lastly observation method has been continuous with the

questionnaire method, as one continuously observes the

surrounding environment he works in.

Proc

edure of research methodology:-

# To conduct this research the target population was the mobile

users, Who are using GSM technology.


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# Target geographic area. Sample size of 30 was taken.

# To these 30 people a questionnaire was given, the questionnaire

was a combination of both open ended and closed ended

questions.

# The date during which questionnaires were filled.

# Some dealers were also interviewed to know their prospective.

Interviews with the managers of GSM service providers were also

conducted.

# Finally the collected data and information was analyzed and

compiled to arrive at the conclusion and recommendations given.

Sources of secondary data

Used to obtain information on, Bhartis history, current issues,

policies, procedures etc, wherever required.

# Internet

# Magazines

# Newspapers

# Journals

# Bharti Circulars


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# Bharti News Letters


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Introdu

ction


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INTRODUCTION

In the early 1990s, the Indian government adopted a new economic

policy aimed at improving India's competitiveness in the global

markets and the rapid growth of exports. Key to achieving these

goals was a world-class telecom infrastructure.

In India, the telecom service areas are divided into four metros

(New Delhi, Mumbai, Chennai and Kolkata) and 20 circles, which

roughly correspond to the states in India. The circles are further

classified under "A," "B" and "C," with the "A" circle being the most

attractive and "C" being the least attractive. The regulatory body at

that time the Department of Telecommunications (DoT)

allocated two cellular licenses for each metro and circle. Thirty-four

licenses for GSM900 cellular services were auctioned to 22 firms in

1995. The first cellular service was provided by, Modi Telstra in

Kolkata in August 1995. For the auction, it was stipulated that no

firm can win in more than one metro, three circles or both. The

circles of Jammu and Kashmir and Andaman and Nicobar had no

bidders, while West Bengal and Assam had only one bidder each.


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In 1996, the Telecom Regulatory Authority of India (TRAI) bill was

introduced in the Lok Sabha, and the president officially announced

the TRAI ordinance on 25 January 1997. The government decided

to set up TRAI to separate regulatory functions from policy

formulation, licensing and telecom operations. Prior to the creation

of TRAI, these functions were the sole responsibility of the DoT.

High license fees and excessive bids for the cellular licenses put

tremendous financial burden on the operators, diverting funds away

from network development and enhancements. As a result, by 1999

many operators failed to pay their license fees and were in danger

of having their licenses withdrawn. In March 1999, a new telecom

policy was put in place (New Telecom Policy [NTP] 1999). Under

this new policy, the old fixed-licensing regime was to be replaced by

a revenue-sharing scheme whereby between 8-12 percent of

cellular revenue were to be paid to the government.

1.1 INDIAN CELLULAR MARKET - EARLIER ROADBLOCKS

AND THEIR RESOLUTION

Indian Cellular market immediately after the first round of licensing

in 1994-96 was beset by several problems for 3 - 4 years till the

New Telecom Policy of 1999 was announced. Some of these

roadblocks / current position is tabulated below:


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ROADBLOCKS

CURRENT POSITION

High license fees

Migration to revenue sharing mode in 1999 mitigates high initial

fund requirements for payment of license fees.

Inadequately funded businesses / weak and fragmented promoters

Businesses that have since been adequately funded growing at

over 60% per annum, while businesses with weak promoters

continuing to languish - spate of acquisitions / mergers, with 4/5

major groups emerging in the last one/two years.

Regulatory authority not in place

Telecom Regulatory Authority of India (TRAI) firmly in place, and its

role being accepted by all operators; Deptt. of Telecommunications

(DOT) restructured, with operations and policy making roles vested

in different bodies.

Issues relating to unfavorable interconnect terms for private

operators, pass through income, intra circle long distance, spectrum

availability and allocation and the like remained unresolved for long

periods.


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Interconnect terms since rationalized, risks on pass through income

to DoT / BHARTI (Mahanagar Telecom Nigam Ltd.) resolved to the

satisfaction of all parties with changes in methodology / revenue

sharing, intra circle long distance allowed, spectrum availability

cleared with vacation of frequencies for usage by GSM operators.

Problems in Financial closures due to:

Licensing tenure of 10 years

Large up front cash requirements from promoters due to

heavy license fee burden in initial stages of deployment Asset

based financing approach by Indian Financial Institutions.

Licensing tenure increased from 10 to 20 years

Large up front cash requirements for license fee payments

mitigated with migration to revenue sharing mode allowing

promoters to deploy more capital for capital expenditure;

project financing being considered by most financial

institutions.

Foreign ownership / change of partner limitations

Foreign ownership norms clarified, and change of partners allowed

as a matter of routine allowing ease of entry / exit - paves the way

for full control of businesses by foreign companies.


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Inadequate growth of market / subscribers

Roadblocks spelt out earlier resulted in low market / subscriber

growth, but with corrective measures taken, market / subscriber

base expected to zoom

1.2 DEVELOPMENTS IN THE CELLULAR INDUSTRY

The interconnection regime between cellular operators and fixed-

line operators is still biased against the former.

Despite the recent gains of the cellular industry, not everything is

rosy. The cellular penetration rate is still very low at 0.8 percent in a

nation of over one billion people.

In recent years, many foreign companies had pulled out from their

cellular joint ventures in India due to the difficult operating

environment and bureaucracy. In 1999 alone, Swisscom pulled out

from Sterling Cellular, Telstra from Modi Telstra and both the

Telecom Organization of Thailand and Jasmine International from

JT Mobile. In 2000, Telecom Malaysia sold its stake in Usha Martin

Telecom, and both Shinawatra of Thailand and Bezeq exited from

Fascel. In June 2001, British Telecom exited from Bharti Cellular.

Bell South International has also indicated its intention to pull out

from Skycell Communications, and Hong Kong-based Distacom is

seeking to sell its stake in Spice Communications. First Pacific's


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(based in Hong Kong) continued commitment to Escotel is

uncertain, and the former is reviewing various options.

The string of sell-outs notwithstanding, there has been a merger

and acquisition wave sweeping across the Indian cellular industry in

recent years. Hong Kong-based Hutchison Whampoa, via

Hutchison Telecommunications (HK), acquired major stakes in

Sterling Cellular (December 1999), Usha Martin Telecom (mid-

2000) and Fascel (September 2000). Through a partnership with

local company, Kotak Mahindra Finance, Hutchison Whampoa

practically controls Fascel and Usha Martin Telecom, thus

circumventing the 49 percent limit on foreign ownership in Indian

cellular operators. Hutchison Whampoa is also the controlling

shareholder of Hutchison Max Telecom. Not to be outdone, Bharti

Enterprises another major cellular player acquired control of

JT Telecom, which was later renamed Bharti Mobile (December

1999), and Skycell Communications renamed Bharti Mobinet

(August 2000). Bharti also acquired the Punjab license of Essar and

started operations, giving competition to the lone operator there,

Spice Communications. Going forward, Bharti is likely to merge all

its cellular companies into one entity.


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Five companies together bid Rs16.3 billion to bag the licenses for

the fourth operator slots in four metros and 13 circles. Bharti

emerged as the No. 1 bidder with eight new licenses, followed by

Escotel with four, Hutchison with three, and Reliance and Idea

cellular with one each. Bharti and Hutchison have already

commenced operations in all the circles while Idea is set to launch

in Delhi. Escotel and Reliance have not made any headway.

BHARTI, the third cellular operator for Delhi and Mumbai, started

services in March 2001. BSNL, as the third nationwide cellular

operator, launched services in Kolkata and Bihar in January 2002.

This was followed by Tamil Nadu in July 2002. A nationwide launch

was scheduled for 2 October 2002. However, this has been

postponed until after mid October. Once BSNL rolls out its service,

most telecom circles will have four cellular operators. There will be

tremendous competitive pressure, which will result in lower tariffs.

Future rate cuts are expected, which will drive demand, together

with falling handset prices and the introduction of prepaid services.

In the midst of declining interest in technology stocks, Bharti came

out with its long-awaited initial public offering (IPO) in January 2002.

Leveraging on the success of its cellular service, the company got a

very good response from the primary market. The total size of the


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IPO was 185 million shares at a floor price of Rs10. The issue was

oversubscribed by more than 2.5 times, netting Rs8.3 billion. This

will be used to fuel its investment in long-distance, basic and

cellular services.

As of October 2002, only BPL Mobile has launched commercial

general packet radio service (GPRS) in Mumbai. However, large-

scale uptake remains elusive. While both Bharti and Idea have

GPRS-enabled networks, there is caution on their part to launch the

service. With hardly any applications, the success of GPRS remains

a question.

Building visibility and awareness

Deviating from competing on the price platform, cellular operators

are actively promoting their brand and service portfolio through

high-visibility advertising and promotional campaigns. Cellular

operators like Bharti, Orange and BPL Mobile have been

advertising aggressively on hoardings and kiosks. Public transport

like the city rail system and cabs are used widely to carry the

message of mobility.

Customer-focused activities are gaining traction among cellular

operators with the establishment of longstanding consumer benefit

programs. Orange in Mumbai offers "Orange Holidays" and "Orange


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Monsoon Offers" at very attractive rates and added benefits like

discounts on airfare, food and beverages, among others. Others

offer special privileges in retail outlets, cinemas and music shops.

Enterprise mobile applications promising revenue stream

All along, customer acquisition and the top line have been the

focus. Few operators have concentrated on offering differentiated

services for businesses. However, as operators realize that offering

basic voice and Short Message Service (SMS) will get them the

numbers but not the margins, some are now seriously looking at the

enterprise segment for provisioning superior services.

Cost-centered solutions like closed user group (CUG), value-adds

like unified messaging and instant alerts are being offered.

A variety of mobile applications are finding takers among the

enterprise segment. Bharti is in the process of introducing a facility

to fleet management companies so that they can improve the

efficiency of trucks or buses by tracking movement and ensuring

higher-use, accurate route planning. Premium automakers are also

installing a global system for mobile communications inside a

vehicle to help trace lost vehicles and track down stolen cars.

Corporations can choose enhanced services like user-defined call

routing to prevent misuse. Calls can be barred, limiting access to


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select numbers and diverting calls to one single number.

Broadcasting services are also quite popular, especially among fast

food centers that have a central number. Group SMS is quite

popular, especially among enterprises both in the service as well as

the fast-moving consumer goods (FMCG) segment that have a

large field force and need to provide regular updates on inventory

status, discount schemes and movement of goods from warehouse

to the retail outlet. Banks too find bulk SMS service very useful to

forward transactional alerts to their customers.

1.3 FUTURE TRENDS AND DEVELOPMENT

There will be more competition, forcing operators to constantly

focus on differentiations to maintain their lead.

The implementation of enhanced networks like 2.5G will

enable operators to offer data services. This is an opportunity

to customize and differentiate better.

The entry of state-run operators like BSNL and BHARTI

means that prices will no longer be controlled, thus there is

less chance of a cartel being formed.

Network coverage in terms of geographic spread and quality

of coverage is crucial especially for the business subscriber.


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The bigger the service provider's national presence, the better

it is for businesses. On the roaming front, signing up with a

national operator is advantageous.

Limited mobility wireless in local-loop services (by fixed

network service providers) will be a disadvantage for cellular

operators in the short term. Consequently, operators need to

streamline their customer relation activities and adopt

aggressive subscriber acquisition and retention strategies.

1.4 REGULATORY ISSUES

The operations of this sector are determined as under the Indian

Telegraph Act of 1885. A document buried in the sands of time. The

next major policy document, which was produced, was the National

Telecom Policy of 1994, a consequence of the on going process of

liberalization.

Year Event

1851 First telephones in India

1943 Nationalization of telephone companies

1985 DOT was created

1986 Creation of BHARTI and VSNL

1991 Telecom equipment liberalized

1994 Licenses for paging


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1994 Telecom policy announced

September 1994 Guidelines for private sector participation in

basic services

November 1994 Cellular licenses issued for metros

December 1994 Tenders for cellular licenses in 19 cities apart

from 4 metros

January 1995 Tenders for 2nd operator in basic services

apart from DOT on circle basis.

August 1995 VSNL launches Internet services

January 1996 TRAI formed

November 1998 Internet policy announced

The National Telecom Policy of 1994 document, which laid out

broad policy guidelines rather than a series of action points. Like

other policies, it sought to achieve the impossible in finite time like

improve quality of service and its availability, wide coverage (a

phone in every village), at reasonable rates, etc. The targets in

quantifiable terms were installation of 9.5mn additional lines,

telephone on demand by 1997, and a PCO pop of 500. The Eighth

Plan had also allowed private operators in value added services. To

facilitate licensing, the nation was divided into 20 circles (akin to a


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state) for basic and 21 circles for cellular telephony. Mumbai falls in

Maharashtra circle and Delhi in itself a circle.

The basic premise on which competition has been introduced is that

every circle will have one private operator apart from DOT/ BHARTI

for basic and two operators for cellular. DOT/ BHARTI have the

option to become the third cellular operator in future.

Government did not achieve most of its stated targets. The basic

theme, which was broadening the reach of telephony in India, has

not been met. Even liberalization policies were not implemented

properly. The regulator TRAI was set up after delays and confusion

and even after its creation, DOT continued to fight with it in courts. It

was also affected by the resource crunch, and financing options like

BOT, BOOT and BOLT was not used at all. The major policy

direction it showed was to allow private sector entry in both basic

and value added services. The intention, though noble failed to

achieve its goals because of improper implementation, the

economic costs are still borne by the end user.

The telecom sector has witnessed some fundamental structural and

institutional reforms in the past decade. Telecom equipment

manufacturing was completely deregulated in 1991. Value-added

services (including cellular services) were thrown open to private


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sector participation in 1992. Basic services were opened to private

participation in 1994 by dividing the country into 21 telecom Circles

and allowing one private operator per Circle to compete with DOT.

An independent telecom regulatory Authority of India was set up in

1997. A new Policy for Internet Service Policy Providers (ISPs) was

announced in 1998 allowing independent service providers to enter

the sector ending the earlier monopoly of VSNL. Reorganization of

DOT, separating policymaking function and service provision and

corporatization of DOT's operational network are two major

institutional reforms, which need to be implemented.


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COMPANY PROFILE

we are one of asias leading providers of telecommunication

services with presence in all the 22 licensed jurisdictions (also

known as telecom circles) in india, and in srilanka. we served an

aggregate of 105,195,762 customers as of june 30, 2009; of whom

102,367,881 subscribe to our gsm services and 2,827,881 use our

telemedia services either for voice and/or broadband access

delivered through dsl. we are the largest wireless service provider in

the country, based on the number of subscribers as of june 30,

2009. we also offer an integrated suite of telecom solutions to our

enterprise customers, in addition to providing long distance

connectivity both nationally and internationally. we have recently

forayed into media by launching our dth and iptv services. all these

services are rendered under a unified brand airtel.


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the company also deploys, owns and manages passive

infrastructure pertaining to telecom operations under its subsidiary

bharti infratel limited. bharti infratel owns 42% of indus towers

limited.

bharti infratel and indus towers are the two top providers of passive

infrastructure services in india.

company shares are listed on the stock exchange, mumbai (bse)

and the national stock exchange of india limited (nse)

Partners

The company has a strategic alliance with singtel. the investment

made by singtel is one of the largest investments made in the world

outside singapore, in the company.


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The companys mobile network equipment partners include ericsson

and nokia. in the case of the broadband and telephone services and

enterprise services (carriers), equipment suppliers include siemens,

nortel, corning, among others. the company also has an information

technology alliance with ibm for its group-wide information

technology requirements and with nortel for call center technology

requirements. the call center operations for the mobile services

have been outsourced to ibm daksh, hinduja tmt, teletech &

mphasis.

Vision

"As we spread wings to expand our capabilities and explore new

horizons, the fundamental focus remains unchanged: seek out the

best technology in the world and put it at the service of our ultimate

user: our customer."

These are the premise on which Bharti Enterprises has based its

entire plan of action.


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Bharti Enterprises has been at the forefront of technology and has

revolutionized telecommunications with its world-class products and

services.

Established in 1985, Bharti has been a pioneering force in the

telecom sector. With many firsts and innovations to its credit,

ranging from being the first mobile service in Delhi, first private

basic telephone service provider in the country, first Indian company

to provide comprehensive telecom services outside India in

Seychelles and first private sector service provider to launch

National Long Distance Services in India. Bharti had approximately

3.21 million total customers nearly 2.88 million mobile and

334,000 fixed line customers.

Its services sector businesses include mobile operations in Andhra

Pradesh, Chennai, Delhi, Gujarat, Haryana, Himachal Pradesh,

Karnataka, Kerala, Kolkata, Madhya Pradesh circle, Maharashtra

circle, Mumbai, Punjab, Tamil Nadu and Uttar Pradesh (West)

circle. In addition, it also has a fixed-line operation in the states of

Madhya Pradesh and Chhattisgarh, Haryana, Delhi, Karnataka and

Tamil Nadu and nationwide broadband and long distance networks.

Bharti has recently launched national long distance services by

offering data transmission services and voice transmission services


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for calls originating and terminating on most of India's mobile

networks.

The Company is also implementing a submarine cable project

connecting Chennai-Singapore for providing international

bandwidth.

Bharti Enterprises also manufactures and exports telephone

terminals and cordless phones. Apart from being the largest

manufacturer of telephone instruments, it is also the first telecom

company to export its products to the USA.

Bharti Tele-Ventures' strategic objective is

to capitalize on the growth opportunities that the Company believes

are available in the Indian telecommunications market and

consolidate its position to be the leading integrated

telecommunications services provider in key markets in India, with a

focus on providing mobile services.

The Company has developed the following strategies to achieve its

strategic objective:

Focus on maximizing revenues and margins;

Capture maximum telecommunications revenue potential with

minimum geographical coverage;


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Offer multiple telecommunications services to provide

customers with a "one-stop shop" solution;

Position itself to tap data transmission opportunities and offer

advanced mobile data services;

Focus on satisfying and retaining customers by ensuring high

level of customer satisfaction;

Leverage strengths of its strategic and financial partners; and

Emphasize on human resource development to achieve

operational efficiencies.


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Businesses

Bharti Tele-Ventures current businesses include : -

Mobile services

Fixed-line

National and international long distance services

VSAT, Internet services and network solutions

Competitive Strengths

Bharti Tele-Ventures believes that the following elements will

contribute to the Company's success as an integrated

telecommunication services provider in India and will provide the

Company with a solid foundation to execute its business strategy:

Nationwide Footprint - approximately 92% of India's total

mobile subscribers resided in the Company's fifteen mobile

circles. These 15 circles collectively accounted for

approximately 56% of India's land mass;

Focus on telecommunications to enable the Company to

better anticipate industry trends and capitalize on new

telecommunications-related business opportunities;

The strong brand name recognition and a reputation for

offering high quality service to its customers;


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Quality management team with vision and proven execution

skills; and

The Company's strong relationships with international

strategic and financial investors such as SingTel, Warburg

Pincus, International Finance Corporation, Asian

Infrastructure Fund Group and New York Life Insurance.

Brand Architecture:

Bharti is working on a complex three-layered branding

architecture to :

Create specific brands for each service,

Build sub-brands within each of these services and

Use Bharti as the mother brand providing the group its

corporate identity as well as defining its goal to become a national

builder of telecoms infrastructure.


47/104

AirTel - The flagship brand for cellular operations all across

the country.

Touchtel- The brand earmarked for basic service operations.

India One - The brand for national long distance (NLD)

telephony

Though the costs of creating new brands are heavy but the

group wants to create distinct independent brands to

address different customers and profiles.

Brand Strategy:

BHARTI

AIRTEL(Cellular

Operations)

TOUCHTEL(Basic Service

Operations)

INDIA ONE(National Long

Distance)


48/104

To understand the brand strategy, lets first look at the brand

building exercise associated with AirTel a brand that had to be

repositioned recently to address new needs in the market.

When the brand was launched seven years ago, cellular telephony

wasnt a mass market by any means. For the average consumer,

owning a cellular phone was expensive as tariff rates (at Rs 8 a

minute) as well as instrument prices were steep sometimes as

much as buying a second-hand car.

Bharti could have addressed the customer by rationally explaining to

him the economic advantage of using a mobile phone. But Sachdev

says that such a strategy would not have worked for the simple

reason that the value from using the phone at the time was not

commensurate with the cost.

Instead of the value-proposition model, we decided to address the

sensory benefit it gave to the customer as the main selling tack. The

idea was to become a badge value brand, he explains.

So the AirTel leadership series campaign was launched showing

successful men with their laptops and in their deluxe cars using the

mobile phone. In simple terms, it meant AirTel was positioned as an

inspirational brand that was meant for leaders, for customers who

stood out in a crowd.


49/104

Did it work? Repeated surveys following the launch showed that

there were three core benefits that were clearly associated with the

brand leadership, dynamism and performance.

These were valuable qualities, but they only took AirTel far enough

to establish its presence in the market. As tariffs started dropping, it

became necessary for AirTel to appeal to a wider audience. And the

various brand-tracking exercises showed that despite all these good

things, there was no emotional dimension to the brand it was

perceived as cold, distant and efficient.

Sachdev and his team realized that in a business in which customer

relationships were the core this could be a major weakness. The

reason? With tariffs identical to competitor Essar and roughly the

same level of service and schemes, it had now become important

for Bharti to humanize AirTel and use that relationship as a major

differentiation.

The brand had become something like Lufthansa cold and

efficient. What they needed was to become Singapore Airlines,

efficient but also human. A change in tack was important because

this was a time when the cellular market was changing.


50/104

The leadership series was okay when you were wooing the crme

de la crme of society. Once you reached them you had to expand

the market so there was need to address to new customers.

By that time, Bharti was already the leading cellular subscriber in

Delhi with a base of 3.77 lakh (it now has 1.2 million customers).

And with tariffs becoming more affordable as cell companies

started cutting prices it was time to expand the market.

How could Bharti leverage this leadership position down the value

chain? Surveys showed that the concept of leadership in the

customers minds was also changing. Leadership did not mean

directing subordinates to execute orders but to work along with a

team to achieve common objectives it was, again, a relationship

game that needed to be reflected in the AirTel brand.

Also, a survey showed that 50 per cent of the new customers

choose a mobile phone brand mostly through word-of-mouth

endorsements from friends, family or colleagues. Thus, existing

customers were an important tool for market expansion and Bharti

now focused on building closer relationships with them.

That is precisely what the brand tried to achieve through its new

positioning under the AirTel Touch Tomorrow brand campaign.

This set of campaigns portrayed mobile users surrounded by caring


51/104

family members. Says Sachdev: The new campaign and

positioning was designed to highlight the relationship angle and

make the brand softer and more sensitive.

As it looks to expand its cellular services nationwide to eight new

circles apart from the seven in which it already operates Bharti is

now realizing that there are new compulsions to rework the AirTel

brand, and a new exercise is being launched to this effect. Right

now, the company is unwilling to discuss the new positioning in

detail. But broadly, the focus is on positioning AirTel as a power

brand with numerous regional sub-brands reflecting customer needs

in various parts of the country.

If AirTel is becoming more humane and more sensitive as a brand,

Bharti has also understood that one common brand for all cellular

operations might not always work in urban markets that are now

getting increasingly saturated.

To bring in new customers, the company decided that it needed to

segment the market. One such experiment, launched last year, is

Youtopia, a brand aimed at the youth in the 14 to 19 age bracket

and for those who are young at heart. With its earlier positioning,

AirTel was perceived as a brand for the well-heeled older customer;


52/104

there was nothing for younger people. With Youtopia, AirTel hoped

to reverse that.

In order to deliver the concept, AirTel offered rock bottom tariff rates

(25 paise for 30 seconds) at night to Youtopia customers a time

when they make the maximum number of calls. It also set up

merchandising exercises around the scheme like a special portal

for young people to buy things or bid for goods.

The company is now looking at offering other services at affordable

prices to this segment which include music downloads on the mobile

and bundling SMS rates with normal calls to make it cheaper for

young people to use.

The other experiment that Bharti has worked on is to go in for

product segmentation through the Tango brand name. The brand

was created to offer mobile users Internet-interface services or what

is known as WAP (Wireless Application Protocol).

The idea was to bring Internet and mobile in perfect harmony. The

name was chosen from the popular movie title It Takes Two To

Tango: basically, you need the two services to tango to offer

customers a new choice, says Sachdev.


53/104

This, however, had less to do with the branding exercise as with

inefficiency of service (accusingly slow download speeds) and the

limited utility of WAP services.

Subsequently, the ads were withdrawn, but the company re-iterated

that the branding exercise could be revived because Tango will be

the brand to offer GPRS services or permanent Internet

connectivity on the mobile phone which AirTel is expected to

launch soon.

The Magic:

Perhaps the more ambitious experiment has been with Magic the

pre-paid card. The idea was to make the brand affordable,

accessible and, most importantly, feasible as a means of expanding

the market even faster.

PHASE I

Magic was aimed at bringing in infrequent users of a mobile phone

into the market and assure him that he would have to pay only if he

made a call. Such a customer used the phone sparingly mostly

for emergencies and was not willing to pick up a normal mobile

connection with its relatively high rentals (pre-paid cards do not

include rental charges).


54/104

To achieve its objectives Bharti did three things.

One, the product was made available at prices ranging

from Rs 300 to Rs 3,000 with no strings attached and was

simple to operate.

Two, the product was made accessible and distributed

through small stores, telephone booths and even kirana shops

so that the offering was well within arms reach.

Third, to make the product more approachable to the

customer, the company came with vernacular ad campaigns

like Magic Daalo Say Hello which appealed to local

sensibilities.

This apart, the company roped in VIDYA BALAN and R

MADHAVAN for a major ad campaign all across Delhi, a ruse that

saw the number of subscribers go up from 5.47 lakh to 12 lakh

today, overtaking Essars branded pre-paid card Speed, which was

launched much ahead of Magic. The company is now re-working its

Magic strategy even further.

Earlier, the branding strategy was aimed at roping in only interested

customers that is, customers who were already inclined to opt for

mobile services. But now, with basic service providers having been


55/104

allowed limited mobility at far cheaper rates, mobile service

providers could find themselves under threat again.

That is why the new exercise is aimed at co-opting non-adopters.

While the exact strategy is under wraps, insiders say the new

branding strategy would be aimed at offering them value which they

had not perceived would be available from using a pre-paid card.

PHASE II -

Bharti used AirTel Magic to build a strong value proposition and

accelerate market expansion through Indias first national pre-paid

card TV brand campaign

First time ever in India - any pre-paid card brand goes on TV

A combination of the film genre exposed through the TV medium

designed to connect with the masses of India

Youth based - romance driven strategy platform makes the value

proposition of AirTel Magic - Mum kin Hai come alive

All elements - user imagery, context, tone & language created to

connect the category to the lives of the SEC B & SEC C segment

the middle class non-mobile user.


56/104

AirTel Magic positions itself on the platform of being excellent for

emergency situations - increasing productivity as a part of

everyday life.

Shahrukh Khan makes everything in life possible while

romancing pretty Kareena Kapoor with AirTel Magic, Indias

leading pre-paid mobile card.

AirTel today unveiled its strategy for market expansion with the

launch of its new AirTel Magic pre-paid card brand campaign

Magic hai to Mum kin hai. The strategy is targeted at the non-user

segment defined as young adults, 15-30 years of age; in the Sec B

& C segment is aimed at accelerating market expansion. The value

proposition is centered around a persons desire to make all his /

her dreams, ambitions & aspirations instantly possible. The new

campaign for AirTel Magic is all about empowering millions of

Indians to be on top of their lives.

The brand is positioned to be relevant to the mass-market who want

to make all their dreams, hopes & desires come alive instantly.

(At just Rs.300/- per month AirTel Magic is so easy to buy.)

Improving productivity, letting you befriend the world and opening

up new horizons. It gives you the freedom to control your life in a

way never possible before. Indeed, anything that you think is


57/104

possible is possible with AirTel Magic. The new brand slogan

Magic hai to Mum kin hai has been specially created to capture

this effectively.

This strategy is designed to help us talk to this segment directly in

the tone, manner & language of the masses. The Mum kin hai

value proposition will help us expand the market and gain a higher

percentage of market shares in the process.

The brand ambassadors Shahrukh Khan and Kareena Kapoor

embody this can do or Mumkin Hai spirit (infact that is the reason

they were selected as brand ambassadors). Shahrukh rose from a

TV actor to become Indias top film star and national heartthrob.

Kareenas success is due to her attitude, talent, hard work and the

sheer ability to make a mark in such a short time. Both these stars

have said Mum kin hai and made it happen for themselves.

The genre of this new strategy & campaign is Hindi cinema led.

This genre connects millions across India. The spirit of romance,

dancing the Indian cinema, well known to most as Bollywood,

holds millions of Indians together as one.

The new TV campaign of AirTel Magic crafted in the Hindi film

idiom, magnifies the empowering optimism of Mum kin Hai, in the

endearing situation of a boy-girl romance. Where Sharukh Khan,


58/104

sets his eyes on Kareena Kapoor and wins her love with the help of

AirTel Magic. (Poignantly conveying that special feeling we all get

when a dream is made possible and a victory of the heart is won).

The strategy & new brand campaign is targeted at the large

untapped base of intending mobile customers from Sec A, B & C.

The estimated addressable market of such customers in the next

two years is around 25 million in AirTels 16 states. The new

strategy aims at correcting the perception that the mobile category

is useful mainly for business or work related scenarios.

The new strategy, brand positioning & brand slogan is an outcome

of an extensive nationwide research and is an integral part of AirTel

Magics new multi-media campaign. The campaign has been

created by Percept Advertising.


59/104

PHASE III -

Bharti used AirTel Magic to build a strong value proposition and

accelerate market expansion through Indias first national pre-paid

card TV brand campaign

First time ever in India - any pre-paid card brand gives such

freedom to recharge any value

A combination of the film genre exposed through the TV medium

designed to connect with the masses of India

Youth based - romance driven strategy platform makes the value

proposition of AirTel Magic - Aisi azaadi aur kahan? come alive

Shahrukh Khan makes everything in life possible AirTel today

unveiled its strategy for market expansion with the launch of its

new AirTel Magic pre-paid card brand campaign Magic hai to

Mum kin hai. . The value proposition is centered around a

persons desire to make all his / her dreams, ambitions &

aspirations instantly possible. The new campaign for AirTel

Magic is all about empowering millions of Indians to be on top of

their lives.

The brand is positioned to be relevant to the mass-market who want

to make all their dreams, hopes & desires come alive instantly .At


60/104

a amount of your choice you can recharge your account with

available validity time .Improving productivity, letting you befriend

the world and opening up new horizons. It gives you the freedom to

control your life in a way never possible before. Indeed, anything

that you think is possible is possible with AirTel Magic. The new

brand slogan Aisi azadi aur kahan has been specially created to

capture this effectively.

Amount

Servi

ce

Processin

g

Talk

Time

Validi

ty

(Rs.)

Tax

(8%)

Fees(Rs.

) (Rs.)

(Day

s)54 4 25 25 560 4.44 25 30.56 5

75 5.56 25 44.44 5100 7.41 25 67.59 5125 9.26 50 65.74 10150 11.11 50 88.89 10175 12.96 50 112.04 10200 14.81 50 135.19 10216 16 85 115 20225 16.67 85 123.33 20250 18.52 85 146.48 20275 20.37 85 169.63 20300 22.22 85 183.78 20

Amount

Servi

ce

Processin

g

Talk

Time

Validi

ty

(Rs.)

Tax

(8%)

Fees(Rs.

) (Rs.)

(Day

s)

324 24 150 150 30


61/104

350 25.93 150 174.07 30360 26.67 150 183.33 30375 27.78 150 197.22 30400 29.63 150 220.37 30

425 31.48 150 243.52 30475 35.19 150 289.81 30500 37.04 150 312.96 30525 38.89 150 336.11 30540 40 150 350 30600 44.44 150 405.56 30650 48.15 150 451.56 30700 51.85 150 498.15 30775 57.41 150 567.59 30

800 50.36 150 580.74 30

( Rs.)

Tax

(8%)

Fees(Rs.

)

(Rs.

)

(Day

s)850 62.96 150 637.04 60900 66.67 150 683.33 60

1000 74.07 150 775.93 601080 80 150 850 601200 88.89 150 961.11 60

1300 96.3 150 1053.7 601400 103.7 150 1146.3 601500 111.11 150 1238.89 601800 133.33 150 1516.67 602000 148.15 150 1701.85 602160 160 150 1850 603000 222.22 150 2627.78 605000 370.37 300 4329.63 3666000 444.44 300 5255.56 366

7000 518.52 300 6181.48 3668000 592.59 300 7107.41 3669000 666.67 300 8033.33 3669999 740.67 300 8958.33 366

Other Brand Building Initiatives:-


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The main idea is to stay ahead of competition for at least six

months. Working on the above game plan Bharti is constantly

coming up with newer product offerings for the customers.

The focus, of course, is to offer better quality of service.

To make the service simpler for customers using

roaming facilities, Airtel has devised common numbers for

subscribers across the country for services like customer care,

food services and cinema amongst others.

It will also launch a unified billing system across circles

so, customers moving from one place to another do not have

to close and then again open new accounts at another place.

To assist customer care personnel to deal with

subscriber queries, a storehouse of 40,000 frequently asked

questions and their answers have been stored on the

computers.

Bharti expects that most of its new customers (one

estimate is that it would be 60 to 70 per cent of the total new

subscriber base) would come from the pre-paid card segment.

So, they must be given value-added products and services

which competitors dont provide.


63/104

Bharti, for the first time for a cellular operator, has

decided to offer roaming services even to its pre-paid

customers, but the facility would be limited to the region in

which they buy the card. To ensure that customers dont

migrate to other competing services (which is known as churn

and ranges from 10 to 15 per cent of the customer base every

month), the company is also working on a loyalty program.

This will offer subscribers tangible cash benefits depending

upon their usage of the phone.

The loyalty program will not be only for a badge value,

it will provide real benefits to customers. The idea is to create

an Airtel community.

Another key area which Bharti is concentrating its

attention upon is a new roaming service launched in Delhi

under which calls of a roaming subscriber who is visiting the

city will be routed directly to his mobile instead of traveling via

his home network.

The company also offers multi-media messaging

systems under which customers having a specialized phone

with a in-built camera can take pictures and e-mail it to friends


64/104

or store it in the phone. The cost per picture is between Rs 5

to Rs 7.

Bharti is also aware that it has to make owning a ready-

to-use cellular service much easier than it is today. A key area

is to increase the number of activation centers. Earlier Bharti

had 250 Airtel Connect stores which were exclusive outlets

(for its services) and about 250 Airtel Points which were kiosks

in larger shops. Now activation can be done by all of them,

and not only by Connect outlets, all within 15 to 20 minutes. In

comparison, the competition takes two to four hours.

Pre- paid cards are really catching up with the mobile

phone users and it is actually helping the market to increase.

First, they are easier to obtain and convenient to use. Unlike

post-paid, one need not pay security deposits for picking up a

pre-paid card. It is often available even with paanwalas. As

befits a fast-moving consumer service, the game is now

moving beyond price to expanding distribution reach and

servicing a well-spread-out clientele with technology and

strategic alliances. Bharti is focusing on two factors to make

pre-paid cards more attractive. Keeping the entry cost low for

consumers and making recharging more convenience.


65/104

Bharti is in the process of launching a new system in

alliance with Mumbai-based company Venture Infotech which

will enable a pre-paid card user to renew his subscription by

just swiping a card. The system will not only save users the

hassle of going out and buying a card every time it expires but

also enable mobile companies to reduce the cost of printing

and distributing cards.

Bharti Televentures has tied up with 'Waiter on wheels,'

a company delivering food at home, to reach its Magic pre-

paid cards to subscribers' doorsteps. The company is also

joining hands with local grocery shops which will enable users

to recharge their cards by just making a phone call to the

shop. Apart from improving the convenience of recharging,

mobile operators are beefing up their distribution channels.

The company is constantly innovating to enhance the value

proposition for its pre-paid service. They are leveraging

technology to expand their distribution network and deliver

round-the-clock recharge options to its MOTS (Mobile On the

Spot) subscribers.

Bharti Cellular has also launched a special service, Care

Touch, for high-value, corporate customers, providing them


66/104

with instant, single-point access for any assistance they

require. Customers can dial 777 and enjoy a slew of services,

which includes easier payment of bills, service on priority

basis, and value-added services without any additional paper

work. Bharti Cellular is offering a range of services without

going through an interactive voice recorder ensuring that they

save time. Dedicated Care Touch executives are expected to

assist customers with any service on priority basis. Besides

the regular proactive reminder calls for bill payment,

customers can also call Care Touch for bill payments at free of

cost.

AirTel presented MTV Inbox; the first on-air SMS

based interactive music dedication show exclusively for AirTel

and AirTel Magic customers. Highly interactive VJ based show

with real-time feedback mechanism. Both brands joined hands

to target the high growth youth segment.


67/104


68/104

FINDINGS AND ANALYSIS

Age Group Graph

As we can see from the above graph, the people who are in the age

group of 21-28 years are the ones who are the maximum users of

mobile phones. This segment is the one which gives maximum

business to the mobile operators. This segment constitutes the

young executives and other office going people. They are 65% of

the total people who were interviewed. The next age group are the

people who are 28-35 years old. They are 20% of the total. They

are those who are at home or have small business units etc. And

the next age group is the youngest generation who are 15-21 years

old. They are school and college going students and carry mobile

phones to flaunt. They are 15% of the total interviewed people.

Occupation Graph

AGE GROUP

15-21

15%

21-28

65%

28-35

20%


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As the above graph shows that 55% of the total people interviewed

are working. So, these people are the ones who are the maximum

users of mobile phones. They are the young executives, managers,

Tele - callers etc. who require mobile for their official purposes. The

next category is the households, who are either housewife, small

units which operate from their homes etc. They are 20% of the

whole. The next segment is the students. They are 15% of the

whole. And 10% of the whole is categories who are the

professionals.

Service Provider Graph

17%

53

%

15

%

15

%

OCCUPATION

STUDENTS EXECUTIVES

HOUSEHOLDS OTHERS


70/104

The above graph shows a slice of 50%. These are the total no. of

people who are using Airtel. It seems that people are more aware of

Airtel than any other brand. The next popular brand is Hutch. 305 of

the people interviewed had Hutch connections. The next popular

brand was Idea. 15% people had Idea connections. As it came very

late in the market when Airtel had established it self very well. So,

that could be one of the reasons of such a low percentage. The

remaining 5% had trump connections.

Customer Service At Airtel Graph

15%

50%

30%

5%

SERVICE PROVIDER

IDEA AIRTEL HUTCH OTHERS


71/104

As the above graph clearly shows that customer services at Airtel

seems poor. 60% of the people are dissatisfied with the customer

services provided by Airtel. They are the ones who have the

maximum share in the market but they are lagging behind in the

customer services. 10% of the people were fully dissatisfied with the

customer services of Airtel. This could leave an impact on the mind

of the consumer. He can even switch over his brand. 20% of the

people seemed partially satisfied with the customer services and

only 10% seem to be fully satisfied with Airtels customer services,

which is a very small amount.

Type Of Card Graph

CUSTOMER SATISFACTION LEVEL

20%

10%

60%

10%

FULLY PARTIALLY

DISSATISFIED FULLY DISSATISFIED


72/104

Cash cards seemed quite popular among the people interviewed.

85% of the total mobile users were having cash card connections.

This means that the cash cards should be easily and readily

available in the local markets. Airtel should make sure that Magic is

available in each and every nook and corner of the market. 15% of

the people were having sim connections which are the regular bill.

TYPES OF CARDS

CASH

CARD

85%

SIM

CARD

15%


73/104

Monthly expense graph

People on an average spend RS 500 per month as their mobile

phone expense. 64% people spend this amount. 24% people spend

RS 300 per month as their monthly mobile expense. And the

remaining 12% had an expense more than RS 1000, they could the

ones having sim connections or having cash cards and having a lot

of business calls on their mobiles.

Monthly Expense

12%

64%

24%

Rs 600

Rs 450Rs 200


74/104

Awareness About WLL Graph

WLL seemed to be a new word for many of the people. 45% of the

people were not at all aware of such a technology. So, in order to

get the answer for this question they were first explained the

concept. Only, 55% people knew what WLL is all about.

AWARENESS ABOUT WLL

YES

55%

NO

45%


75/104

Awareness of WLL Players Graph

Reliance was the brand which was popular amongst the interviewed

people. As Reliance had done so much advertising and has it

banners and hoarding spread all over Delhi. So, this could be one

the reasons of its popularity. Tata was hardly a known brand in this

new field. Possibly, because of less promotions done by them as

compared to Reliance.

On the basis of analysis of the questionnaire I have found that the

maximum no. of people who use mobile phones is in the age group

of 20 to 28. Who are the young executives and other office goers?

AWARENESS OF WLL PLAYERS

RELIANCE

85%

TATA

INDICOM

15%


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They spend a maximum of RS. 500 as their mobile expense.

There is more no. of prepared cards than post paid cards. The

mobile users want to spend money side by side than to spend

money at the end of the month on a big bill.

Now when I compared Airtel with its competitor from the point of

view of the consumer I found that on the basis of Tariff plan, value

added services and billing accuracy Airtel is at par or ahead of its

competitor but in the case of customer care and availability they lag

behind there competitors. As, Airtel has a hold in the market

because it has the maximum no. of connections, so it must improve

upon it customer services. As far as WLL is concerned people are

aware about it but not many people are aware about Tata. They

only know more about Reliance. People at this point of time are not

interested to switch over from GSM to WLL.


77/104

SUGGESTIONS

Following are the few suggestions to AIRTEL for improving

the market share and image of the products concerned.

1. PRODUCT

*Modification must be brought about in AIRTEL, in

terms of quality. Its demand should be increased.

2. PLACE

* The brands must be made available easily in, PCO &

general stores.

3. PROMOTION

*Company must undertake extensive promotional

activities like advertisements must be released in

different Medias to create brand awareness.

*Free samples should be distributed among the

prospects. Sales promotion tools like gifts, contests and

coupons must be given to retailers as well as

customers and prospects.

* Catalogues should be distributed amongcustomers.

4. Innovative policy:

The company must provide innovative tariff policy

to the customer so as to retain the customer .


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SWOT ANALYSIS

Strengths

Being one of the largest companies in India the company

has achieved a degree of focus in its core business of its

products.

It has a strong brand name, superior quality products and

an enviable distribution network.

It has a clear and well-defined organization structure and

limits of financial authority.

Increase in advertisement spends affect the companys

margins.

The companys bottom line falls victim to the bloated and

highly paid workforce, which affects its margins.

Weakness:

Little efforts over the Advertising of products.

Distribution channel is not accurately categorized.

Premium priced products, hence cant compete in low price

segment.

No separate strategy for rural market.


79/104

Opportunities:

The company's financial performance can receive a major

boost from its cost reduction efforts.

There is a lot of scope of product and market

diversification.

Exports of products will also have huge chances in the

coming years.

Airtels business has ample scope for gaining market share

from the unorganized sector. Rural penetration too holds

vast potential to bring about growth.

Threats

The slowdown in the economy has restricted topline growth

of most FMCG majors and for Airtel also it will be difficult to

maintain historical growth rates in such a depressed

scenario.

Companys major raw mater ials are influenced by

government policies / controls as well as vagaries of the

monsoons. Fluctuations in the prices of raw materials

would have significant impact on costs and margins of the

company.


80/104

Moreover, inordinate hike in Broad Band Internet products

would also increases companys production and distribution

cost.


81/104

RECOMMENDATION

I would like to adduce the following recommendation thatmay prove to be potential for the benefit of the company:

The company should modify its credit policy as they

only target the cash paying customers who are not

easy to trace.

First and the foremost the company should concentrate

on retaining the existing customer rather than seeking

new market or customer by offering innovative and new

tariff policies for the mobile.

The company should implement the policy before the

adoption of those policy by their competitor. In nutshell

the company should be pioneer in implement the policy

so as to skim the market before the competitor.

The company should makes its marketing strategy

flexible enough in order to face competition.

The company rate policy must be flexible enough to

catch new customers because if company offers lower

price to a new customer then he may continue buy the

goods and can be a permanent customer for the

company.

The company should take the opinion of exporters from time

to time to know what problems they are facing from the


82/104

companys side? And if any change they require in present

supplying condition?


83/104

LIMITATIONS

No project is without limitations and it becomes essential to

figure out the various constraints that we underwent during

the study. The following points in this direction would add to

our total deliberations:-

1During the study, on many occasions the respondent

groups gave us a cold shoulder.

2.The respondents from whom primary data was gathered

any times displayed complete ignorance about the complete

branded range, which was being studied.

3. Lack of time is the basic limitation in the project.

4. Some retailers/whole sellers refuse to cooperate with the

queries.


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5. Some retailers/whole sellers gave biased or incomplete

information regarding the study.

6. Money played a vital factor in the whole project duration.

7. Lack of proper information and experience due to short

period of time.

8. Some retailers did not answer all the questions or do not

have time to answer.


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CONCLUSION

After analyzing the findings of the research, I can conclude that

Airtel lagged behind its competitors as far as customer service and

availability is concerned. The maximum no. of people who use the

mobile is in the age group of 20 to 28. Cash cards are the most

popular type of mobile connections, as they are consumer friendly

and recharging the connection is not a problem.

Maximum no. of people spends RS 500 on their connections. As

Airtel is the only company having the maximum no of mobile

connections so it must seriously look into the loop holes of the

existing customer service department.

As we know that now airtel has already launched its product with

logo Aisi azaadi aur kahan has already became popular in

market. So we can say that inspite of so many competitor in the

market Airtel is having a good position just because every time, it

tries its best to understand the need of its important customer.

BIBLIOGRAPHY


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In this project report, while finalizing and for analyzing quality

problem in details the following Books, Magazines/Journals and

Web Sites have been referred. All the material detailed below

provides effective help and a guiding layout while designing this text

report.

Books :

Principles of Marketing Philip Kotler

Market Research D.D. Sharma

Research Methodology C.R. Kothari

Websites:

www.airtelworld.com

www.india.com

Magazines:

Airtel (2 July to 10 July 2004)

Airtel India page of HT paper (Thursday 1December 2004)

Cowards India (26 December to 4 Jan. 2004)

QUESTIONNAIRE

Dear Sir/Madam,
http://www.airtelworld.com/http://www.india.com/http://www.airtelworld.com/http://www.india.com/


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I am a student of MBA of RAJ KUMAR GOEL

ENGINEERING COLLEGE doing my Research report project on

strategy and performance of Airtel. Please give your precious time

for filling these details.

Q.1 For how long you have been using Airtel Product?

0-2 Years 2-5 Years 5-10 Years More than 10 years

Q.2 Are you using other product instead of Airtel?

Yes No

Q.3 Among them, which Brand you, prefer most?

Idea Vodafone Airtel

Q. 4 How would you rate the experience with Brand?

Idea Vodafone Airtel

Q.5 Do you collect any information search before making purchase?

Yes No.

Excellent Good Average

BelowAverage


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Q.6 If yes, which sources are used?

Magazines Dealers

Sales Executives Operators reference Pamphlets and catalogue Reference from friends and relatives Any other

Q.7 What are the features you look for in a product before making

purchase decision? Give preferences (1-Highest, 6- least)

Brand credibility Price and Discount After sales services and parts, network Value for money Vehicle performance Add on features or ergonomics of design

Q.8. Which of these marketing / sales schemes attracts you whilepurchasing any connection?

Good Network Discount scheme Service package Any other

Q.9 If you have to purchase a new connection or product in nearfuture, which Brand will you go for and why?

___________________________________________________________________________________________________________________________________________________


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Q.10 Are you aware of various promotional activities being run byAirtel, if yes then how? Are you satisfied with thesepromotional activities?

Customer Care By Ad Films By Camp 24 hrs call center

services

Q.11 How would you rate Airtel performance as your

expectation on 5 points scale (5 Highest?)

1 2 3 4 5 After Sale service Maintenance Product as per expectation

Q.12 What are you suggestions for improving the product quality,service availability and parts availability?

____________________________________________________________________________________________________________________________________________________________________________________________________

Very

Satisfied

Satisfie

d

Somewha

t Satisfied

Not

satisfied


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Scope of study

1. To know the marketing mix of the airtel company.2. To know the customer satisfaction of airtel

company.3. To study the brand image of airtel company.4. To know the recent trend in telecom industry.


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Compa

ny

Profile


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Findings andAnalysi

s


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Sugges

tions


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SWOT

Analysi

s


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Recommendation


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Limitat

ions


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Conclu

sion


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Bibliogr

aphy


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Question

naire

Amit Air Tel

Documents

Transcript of Amit Air Tel